Digital Bros (DIB) Q4 25/26 earnings summary

Executive summary

• Gross revenue rose 15.8% year-over-year to €108.5 million, driven by new releases and strong back catalogue sales.

• EBITDA increased 62.1% to €54.2 million, with a margin of 50% of revenues.

• EBIT turned positive at €5.1 million, despite €18.7 million in asset impairments from project cancellations.

• Net loss narrowed to €6.5 million from €10.7 million the prior year.

Financial highlights

• Gross profit increased 33.1% to €86.4 million, reflecting a favorable product mix and lower royalties.

• Operating costs decreased by 2.1% despite revenue growth, with targeted marketing and a reduced workforce.

• Net interest expense rose to €7.6 million, including a €5.7 million write-down of the Starbreeze investment.

• Adjusted net financial position was positive at €3.3 million, improving by €19.8 million year-over-year.

Outlook and guidance

• Next fiscal year revenues are expected to decline due to timing of major releases, with most launches in the second half.

• EBITDA will follow revenue trends, but EBIT is expected to improve due to fewer impairments.

• Net financial position is projected to further improve by June 2027, despite interim net debt.